Working Paper: NBER ID: w10226
Authors: Mark Grinblatt; Matti Keloharju; Seppo Ikaheimo
Abstract: This study analyzes the automobile purchase behavior of all residents of two Finnish provinces over several years. It finds that a consumer's purchases are strongly influenced by the purchases of his neighbors, particularly purchases in the recent past and by neighbors who are geographically most proximate. There is little evidence that emotional biases, like envy or an urge to conform, lie behind the interpersonal influence in automobile consumption. The most reasonable alternative explanation for these findings is some form of information sharing among neighbors.
Keywords: No keywords provided
JEL Codes: D1; D8
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Informational sharing among neighbors (D16) | Individual automobile purchasing decisions (L62) |
| Neighbor social class (R23) | Influence of neighbor purchases on individual purchasing decisions (C92) |
| Neighbors' automobile purchases (R20) | Individual automobile purchasing decisions (L62) |
| Recent neighbor purchases (R20) | Individual automobile purchasing decisions (L62) |